Under the State Constitution, state tax revenues in excess of the Prop 4 (1979) state appropriations limit, or Gann Limit, must be split between taxpayer rebates and additional school spending. The Governor now proposes a new calculation methodology that creates $22 billion in additional state spending capacity. We find that the Governor's proposal violates the spirit of Proposition 4 and—in our view—is highly vulnerable to legal challenges. We recommend that the Legislature reject the proposal and offer options for legislative consideration.
The 2018-19 Budget: Governor's Gann Limit EstimatesReport Apr 12, 2000
The State Appropriations LimitReport Dec 1, 1979
[PDF] An Analysis of Proposition 4: The Gann "Spirit of 13" Initiative